W.P.(C) Nos.29253 of 2020 & 12435 of 2019

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IN THE HIGH COURT OF ORISSA AT CUTTACK

W.P.(C) Nos. 29253 of 2020 and 12435 of 2019

M/s. Ultratech Cement Limited &

another

….

Petitioners

Dr. A.M. Singhvi, Senior Advocate

with Mr. B.P. Das, Advocate

-versus-

State of Odisha and others

….

Opposite Parties

Mr. P.K. Muduli, Additional Government Advocate

CORAM:

THE CHIEF JUSTICE

JUSTICE A.K. MOHAPATRA

JUDGMENT

4^th January, 2022

Dr. S. Muralidhar, CJ.

1. M/s. Ultratech Cement Limited (Petitioner No.1) and its Senior

Vice-President (Petitioner No.2) have in this writ petition under

Article 226 of the Constitution of India sought the quashing of a

resolution dated 18^th August 2020 issued by the Industries

Department, Government of Odisha (Opposite Party No.2) in

relation to the amendment to the Industrial Policy Resolution

2007 (IPR 2007) as being unconstitutional and illegal. The

principal ground of such challenge is that the said amendment to

the heading of paragraph-18.4 of the IPR 2007 has been made

effective retrospectively from 1^st July 2017 with a view to

preventing Petitioner No.1 from availing the State Goods and

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W.P.(C) Nos.29253 of 2020 & 12435 of 2019

Service Tax (SGST) reimbursement, as contemplated in

paragraph-18.4 of IPR 2007.

Background facts

2. The background facts are that Petitioner No.1 is stated to be

operating cement manufacturing units in various States in India

including a cement manufacturing unit in Jharsuguda District in

Odisha. According to the Petitioners, the said unit is a state-of-

the-art cement manufacturing industrial unit which, inter alia,

utilizes intermediate products (clinker) and waste products (fly

ash) generated by other industrial undertakings along with

gypsum as a raw material to manufacture high quality cement.

3. It is stated that the cement manufacturing process undertaken

by Petitioner No.1 is a controlled manufacturing process resulting

in high value addition, employment generation and revenue

augmentation. It is stated that the said manufacturing process

requires substantial investment in high-end plant and machinery,

monitoring and regulation through sophisticated electrical,

mechanical and instrumentation systems by qualified technical

personnel.

IPR 2007

4. On 2^nd March 2007, the Industries Department, Government of

Odisha published the IPR 2007 with a view to reinforcing and

expanding the policy framework for industrial promotion and

investment facilitation "including creation of an enabling

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W.P.(C) Nos.29253 of 2020 & 12435 of 2019

environment". Paragraph 1.7 of IPR 2007 spelt out the strategy of

the State Government, inter alia, promoting investments "in new

cement plants based on blast furnace slag and fly ash, which

would be available in abundance due to the large number of steel

and power plants coming up in the State".

5. Paragraph-4 of the IPR 2007 spelt out the general policy

framework whereby the State was to pursue a multi-pronged

approach for industrial promotion. Efforts were to be made "to

incentivise investment in thrust and priority sectors with a view to

maximizing the triple objectives of value addition, employment

generation and revenue augmentation". In paragraph-4.4, certain

"thrust sectors" were identified for providing "tailor made

incentive packages" and "additional incentive for the pioneer

industries in these sectors". Paragraph-19 of the Annexure-I to the

IPR 2007 spelt out what industries qualified as being in the

"thrust sector". This included agro processing, automobiles, auto

components, textile, apparel, ancillary and downstream industries.

Industrial units operating the said categories were required to

meet specified minimum capital investment and employment

generation criteria. For instanc